Oil price hike likely to continue – DOE

There is unlikely to be a rollback in the price of petroleum products, according to a Department of Energy (DOE) official.

“Wala tayong nakikitang ganoon,” said DOE Oil Industry Management Bureau director Atty. Rino Abad in TeleRadyo.

On the contrary, the price of crude oil may rise even more next week, he said.

“Ine-expect po talaga natin unfortunately na tataas pa po ang price, until–meron pong colatilla lang dyan, until magkaroon po ng price destruction doon sa demand.”

He explained, “So ang presyo po ay talagang mataas na. May teorya kasi na ang demand na ngayon ang umaatras. Meaning, ang mga gumagamit ang naghahanap ng alternatibo o binabawasan na talaga ang kanilang fuel utilization kasi yung working capital na allocated doon, humihina na yung purchasing power.”

“So, hindi na nila nakakaya dagdagan pa yung absolute amount ng pera. So, in short, ang nakukuha na nilang fuel, pakaunti na nang pakaunti at bumababa ang demand.”

But according to Abad, experts have not yet seen the expected slowdown in demand due to rising oil prices.

Oil price hike likely to continue – DOE

“We are inclined to say na baka sa susunod na linggo, kagaya pa rin ngayon, yung kasingtaas pa rin ngayon ang mangyayaring adjustment,” he said.

According to Abad, oil shortages, declining inventory, and the ongoing conflict between Russia and Ukraine are the reasons for the continuing spike in oil prices.

“Yung ongoing na shortage, daily shortage production na ang estimate ng (International Energy Agency) ay nasa 1 million. Pangalawa, hinuhugot na po yung supplement na yan sa mga existing stored inventory na declining din, na pababa nang pababa dahil wala pong build up na nakukuhang pambalik doon sa inventory,” he said.

“At pangatlo, itong Russia-Ukraine, talagang kumakagat na talaga yung issue ng takot na magkakaroon ng dagdag na shortage galing sa Russian oil. Ang Russian oil ay ine-export, around 5 million barrels per day.”

Abad called on oil companies in the Philippines to continue to give discounts to motorists.

“Sa oil companies, unang-una, ituloy lang po yung fuel discount, malaking bagay po yan sa ating (public utility vehicle) sector, pati non-PUV sector, yung open to all.”

“May mga discount po na open to all, including private motorist,” he said.